Buy a term plan and secure your family
While 65 years being the age of retirement is true for the people who are retiring currently, the speed at which things have been changing in the world, the standard age of retirement may not be relevant for everyone and hence, needs a review.
The young and educated families in the urban area are mostly living in nuclear format. Since there is no extended family to rely on, the youth of today wants to make sure they have a financially independent life before settling down.
The average marriage age has risen from the mid-20s to the late-20s. Now, obviously the age on which the people choose to have a kid is increased by ten years.
In case you get married in the early-30s or have a child in the late-30s/ early-40s, it is advisable to buy a coverage till the time you turn 70 to 75 years. This is to make sure your family is protected from major liabilities or expenses.
There are many people who are above 65 years of age and still work as hard as those who are twenty years younger than them. If you think you are amongst these people, who like to work all their life, or are self-employed who want to continue their work till the time they can, 65 won’t be an ideal age to mark the end of their term insurance plan.
The limited payment options available make it easier for you to purchase longer-term plans. Earlier, with the regular payment options, people did not have the option of choosing a coverage beyond 65 years because making regular payment of premiums would have been questionable.
Now, with the limited pay option, you can obtain premiums for shorter duration and avail coverage for longer duration.
Other than leading your retirement life comfortably, many of you would want your families to enjoy a good life. Hence, you may plan to leave behind a financial legacy. People may evaluate various long-term options for investment. In this case, the policies that cease at the age of 65 may not work for you.
Although the development in medical science may give us a longer life duration, the kind of sedentary lifestyle that we are leading will make us suffer from various medical conditions, even major ones. This, in turn, makes long-term healthcare expenses a major concern in the future, no matter how large a health insurance cover you have.
The medical expenses will rise exponentially, especially, after retirement. This will either affect your living standards or push you to work even beyond your retirement life.
The Bottom Line!
Mostly it is recommended to take a term insurance cover till the time you turn 65 years old. The reason is that 65 is considered as the standard retirement age. It is considered that by 65 you get free from all the liabilities and responsibilities, and would have saved a sufficient amount for you and your family's future.
However, it may not be necessary that you will not need the insurance after you turn 65. Therefore, keeping in mind the current lifestyle of the people, 65 may not be an ideal age for ceasing the insurance policy for everyone.